The global financial system is in check. While governments and bank managers are trying to build confidence among customers so that they do not rush to withdraw their money and accelerate a collapse, the current banking crisis seems to be far from over. So much so that after Silvergate Bank, Silicon Valley Bank (SVB) and Signature Bank went bankrupt in the last few days, many experts are already predicting which banks in the United States and other parts of the world will collapse next.
Attention immediately turned to Credit Suisse after the cost of default insurance skyrocketed. Fears are spreading to other financial institutions, some more at risk of collapse than others.
According to economists and experts, the list of banks that could collapse in the United States includes Pacific Western Bancorp, First Republic Bank and Western Alliance Bancorporation.
So says Scott Hamilton, who is a recognized expert on global liquidity and payments. Hamilton, also a contributing editor at Finextra Research, published just a few days ago a very comprehensive analysis in which he explains the reasons for several banks in the United States and other countries to prepare for possible collapses.
According to Hamilton, "multiple banks have unexpectedly suffered blows over the weekend and in the early hours of Monday in the U.S. market". And it is precisely Pacific Western Bancorp, First Republic Bank and Western Alliance Bancorporation that have the most risk capital right now.
Worrying statistics on U.S. banks that could make them the next to collapse
To give you an idea, Pacific Western Bancorp's stock price plummeted more than 50% since its close last March 10. Trading below $6.00 USD per share.
This indicates that this bank lost more than 75% of its net worth, estimated at some $41 billion in assets.
The outlook is not much more encouraging for First Republic Bank (FRC). This institution plummeted to just $20 USD from $147 USD five weeks earlier. And as if that were not enough, its share price hit a plateau, even though the company's management claimed it rushed to assure its clients that there would be no repeat of Silicon Valley Bank (SVB).
Capital at risk
The Western Alliance Bancorporation, a deposit holding company worth no less than $61 billion, which manages the capital of mainly entrepreneurs and organizations, is under close scrutiny as its client base is quite similar to those of the banks that collapsed in the United States.
It was notable that it briefly halted trading on March 13 and has so far lost 84% from its closing price on March 8. It stands at around $71 USD per share.
In recent days, several companies have revealed their exposure to SVB's bankruptcy. Most notable are cryptocurrency exchange BlockFi with $227 million and payment manager Payoneer with $20 million. Also the streaming world giant Roku with about $487 million. The stablecoin issuer Circle with $3.3 billion. And the social gaming system Roblox, with about USD 150 million.
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